The dollar rose half a percent on Monday against a trade-weighted basket
of currencies after the U.S. Senate approved a tax overhaul at the
weekend, though gains were limited by doubts that interest rates would
rise as a result.
The Senate’s approval on Saturday moves Republicans and President Donald Trump a big step closer to their goal, which would be the largest change to U.S. tax laws since the 1980s.
The U.S. dollar’s trade-weighted index rose 0.5 percent to 93.35 in early London trading before easing to a 0.4 percent gain on the day. Monday’s rise snapped three consecutive days of losses.
For now, the dollar has had a boost from higher U.S. bond yields. Benchmark U.S. Treasury yields were up 2 to 4 basis points across the board.
The dollar was up 0.6 percent at 112.935 yen after rising to 112.985, its highest since Nov. 17.
The euro slipped 0.4 percent to $1.1858 with any optimism generated by the U.S. tax bill offset by growing bets on the European economy. German industrial orders data for October due on Wednesday will be a key data point watched by markets.
The Senate’s approval on Saturday moves Republicans and President Donald Trump a big step closer to their goal, which would be the largest change to U.S. tax laws since the 1980s.
The U.S. dollar’s trade-weighted index rose 0.5 percent to 93.35 in early London trading before easing to a 0.4 percent gain on the day. Monday’s rise snapped three consecutive days of losses.
For now, the dollar has had a boost from higher U.S. bond yields. Benchmark U.S. Treasury yields were up 2 to 4 basis points across the board.
The dollar was up 0.6 percent at 112.935 yen after rising to 112.985, its highest since Nov. 17.
The euro slipped 0.4 percent to $1.1858 with any optimism generated by the U.S. tax bill offset by growing bets on the European economy. German industrial orders data for October due on Wednesday will be a key data point watched by markets.
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